DGAP-Adhoc: Global Fashion Group S.A.: Global Fashion Group expects positive adjusted EBITDA and strong cash generation in Q2

DGAP-Ad-hoc: Global Fashion Group S.A. / Key word(s): Miscellaneous 
GLOBAL FASHION GROUP EXPECTS POSITIVE ADJUSTED EBITDA AND STRONG CASH 
GENERATION IN Q2 
 
09-Jul-2020 / 20:29 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*GLOBAL FASHION GROUP EXPECTS POSITIVE ADJUSTED EBITDA AND STRONG CASH 
GENERATION IN Q2 
 
Luxembourg, 9 July 2020 *- Global Fashion Group S.A. ("*GFG*"), the leading 
online fashion and lifestyle destination in growth markets, reports that it 
expects Q2 to be its second Adjusted EBITDA-profitable and first cash 
flow-positive quarter as a result of strong customer demand recovery since 
the end of April, and the Company's strategic response to the COVID-19 
pandemic. This performance is expected to be significantly above current 
market expectations, which for Adjusted EBITDA margin ranges from (2.0)% to 
0.7%. 
 
Preliminary results indicate the following expected outcomes for GFG's 
performance in Q2: 
 
· *Net Merchandise Value ("NMV") growth on a constant currency basis of 
above 20% for the quarter despite the negative COVID-19 impact in April, 
driven by more than two million new customers.* 
 
· *Adjusted EBITDA* *profitability (low single digit margin), enabled by 
strong gross margin and significantly better marketing efficiency.* 
 
· *Improved Marketplace share of more than 30% (Q2 19: 19%) and around 90% 
Marketplace NMV growth as a result of category mix shift and increased 
Marketplace SKU share.* 
 
· *Profitability, alongside disciplined working capital management and 
capital expenditure, resulted in strong cash generation and a pro-forma 
cash balance1 at 30 June of around &euro260m, up &euro50m from 31 March.* 
 
GFG experienced a strong recovery in sales from late April, with Order 
Intake2 up over 30% since the start of May compared to the same period last 
year. This was driven by strong performances in CIS and LATAM, while APAC 
saw more moderate growth as a result of soft trading in Australia. 
 
GFG will publish its second quarter and first half results on 20 August. 
 
All numbers presented in this release are unaudited and based on first 
preliminary indications (including a number of estimates). The final numbers 
may deviate from the numbers presented in this release. 
 
_____ 
1 Includes restricted cash of &euro20m related to the current RCF facility 
and approximately &euro10.5m drawn on local working capital facilities (Q1 
20: &euro20m and &euro7.9m respectively). 
2 Order Intake is the measure used by GFG to define sales within quarterly 
periods and measures customer order value including VAT and sales taxes and 
net of provisioned returns and rejections at the date of customer order. 
 
Person making the notification: Andin Fonyonga, Group Head of Legal & 
Compliance. 
 
*FURTHER INFORMATION* 
KPI and financial definitions, including the alternative performance measure 
Adjusted EBITDA, are available in the FY 2019 annual report, available on 
the Company website here [1]. 
For inquiries please contact: 
 
*Press / Communications* 
Jovana Lakcevic, Head of PR & Communications 
[e-mail] 
 
*Investor Relations* 
Adam Kay, Investor Relations Director 
[e-mail] 
 
*Forward looking information* 
This announcement contains forward-looking statements. Forward-looking 
statements should not be construed as a promise of future results and 
developments and involve known and unknown risks and uncertainties. Various 
factors could cause actual future results, performance or events to differ 
materially from those described in this announcement, and neither the 
Company nor any other person accepts any responsibility for the accuracy of 
the opinions expressed in this announcement or the underlying assumptions. 
 
*About Global Fashion Group* 
Global Fashion Group is the leading fashion and lifestyle retail destination 
in Asia Pacific, Latin America and CIS. We connect over 10,000 global, local 
and own brands to a market of more than one billion consumers through four 
established e-commerce platforms: THE ICONIC, ZALORA, dafiti and lamoda. 
Through an inspiring and seamless customer experience enabled by our own 
technology ecosystem and operational infrastructure, we are dedicated to 
being the #1 fashion and lifestyle destination in our markets. With 17 
offices and 10 fulfilment centres across four continents, GFG proudly 
employs a dynamic and diverse team with deep local knowledge and expertise. 
In 2019, GFG delivered over 34.6 million orders to 13.1 million Active 
Customers. (ISIN: LU2010095458.) 
 
For more information visit: www.global-fashion-group.com [2] 
 
09-Jul-2020 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Global Fashion Group S.A. 
             5, Heienhaff 
             L-1736 Senningerberg 
             Luxemburg 
Phone:       [phone] 
E-mail:      [e-mail] 
Internet:    https://global-fashion-group.com 
ISIN:        LU2010095458 
WKN:         A2PLUG 
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated 
             Unofficial Market in Dusseldorf, Tradegate Exchange; Luxembourg 
             Stock Exchange 
EQS News ID: 1090825 
 
End of Announcement DGAP News Service 
 
1090825 09-Jul-2020 CET/CEST 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=83b59509e5ec1e604ac8f4edaedf486a&application_id=1090825&site_id=vwd&application_name=news 
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=2ff498541a32809249f3dcd5b5cd636d&application_id=1090825&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

July 09, 2020 14:29 ET (18:29 GMT)